Baker says the key trait for public equity investors is the ability to be rational when wrong.
“If I could know one thing about a person to know whether or not they would be a good public equity investor, it would simply be, are you capable of being rational when you're wrong?”
Baker quotes mentor Jennifer Yurig: investors either panic early or double down late, not both.
“Ultimately, as an investor, you either have to panic early or double down late. And essentially no one does both. And know thyself.”